We Are Usually Aware of Cognitive Biases When They Occur,though

question 23

True/False

We are usually aware of cognitive biases when they occur,though we are not usually aware of emotional biases when they occur.

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Definitions:

Compromise Dividend Policy

A strategy for distributing earnings to shareholders that seeks to balance between retaining earnings for reinvestment and paying dividends.

NPV Projects

Projects that are evaluated based on the Net Present Value method, which calculates the present value of future cash flows minus the initial investment cost.

Debt/Equity Ratio

The ratio that highlights the proportional use of debt and shareholders' equity in asset financing for a company.

Stripped Common Shares

Common stock on which dividends and capital gains are repackaged and sold separately.